It's too bad that things like this will set all digital currencies back years most likely. But as long as stuff like this happens, and it will probably continue to happen, people are going to stay away from them like the plague.

One senator has already proposed banning all alt currencies in the US. I don't think that will go anywhere since most people probably see those trading in such things as just getting what they deserved, so it's not like there will be a lot of support for such a law right now. Even the people into bitcoin don't seem to want to see anything like that happen.

But personally I think some sort of regulation will becoming sooner than anyone imagines. I just hope that when it does it's not this sort of draconian, knee-jerk reaction.